IS the era of the "exotic" mortgage near an end?

Next year, a large portion of those rates move up and homeowners who opted for the exotic mortgages could find their payments doubled.

Owning a home is part of the American dream, but exotic mortgages also may carry risks.

He was talking carefully about regulations, financing, exotic mortgages when a voice rang out: "We want to know how to find the deal when you drive around!"

Families that now need an exotic mortgage to buy a house in Los Angeles could eventually afford one the old-fashioned way.

It also follows guidelines that the banking regulators issued in October to restrict exotic mortgages more broadly.

He also expressed concern about the "dramatic increase" in interest-only loans and other "exotic" mortgages that allow people to borrow much more than with traditional fixed-rate loans.

Borrowers with low credit scores or people who were taking out certain exotic mortgages were required to talk with a federally certified housing group.

He warned bankers this week that borrowers using the more exotic mortgages - and the banks that made the loans - "could be exposed to significant losses" if home prices fell.

New types of "exotic" mortgages became popular in the U.S in the years leading up to the economic downturn.